The Bespoke Finance Team specialize in providing advice to Property Investors – we do the hard research so you don’t have to. Experienced houses of multiple occupation (HMO) Landlords or those new to HMO Finance – we can help you Purchase, Refinance and Expand portfolios.
Licensed HMO or non-licenced HMOs (Multi Lets) – with direct access to the whole mortgage market our specialist brokers can find the best buy to let mortgages for HMO properties.
Have a property in mind to convert to a HMO? Challenge us with to help you buy with our Bridge-to-HMO proposition.
We are Kent Reliance brokers – offering up to 85% LTV HMO Mortgage, we are Precise Mortgages Brokers – offering renovation Bridge-to-HMO, we are Paragon Brokers – offering HMO finance in LTD Co at same rates as individual, we are comprehensive mortgage brokers offering HMO mortgages from a variety of buy to let lenders providing differing products and differing criteria.
HMO Mortgages for
Many banks will say NO! to HMO Finance which leaves us with a limited panel of Buy to Let and Commercial Lenders.
Let our experienced brokers research and provide you solutions for your Licensed HMO’s, be that Refinance, Purchase or finance to convert a property to HMO.
Your experience as a Landlord and your experience as a HMO Owner can all play a big part if a lender will offer you finance. The number of bedrooms, location and internal makeup of the property also play a part.
Bespoke Finance has access to the High Street, Broker-Only and commercial lenders – offering you competitive rates and solutions. Let us worry about criteria – call 08009202001.
Non-Licensed small HMOs (Multi Lets) can benefit from traditional Buy to Let Rates in certain circumstances – we’re talking 2-4 tenants on one tenancy ( typically student lets ).
Price is an important concern for landlords investing in property, Brokers at Bespoke Finance will take this (and other matters) into account when conducting finance research on your behalf. You can enjoy standard buy to let rates – delivering you monthly savings!
If the property requires a HMO License or is in a Selective Licensing Area – these lower rate products may not be available. The property must also be standard home – no internal locks on doors and one kitchen for example.
Don’t do this on your own, its specific lenders & specific products.
HMO Mortgage FAQ
What is a HMO?
A HMO (“a House of Multiple Occupation”) is a rental property occupied by more than 2 persons (being of different family), Typically sharing some or all amenities.
What is a Licensed HMO?
A HMO will require a licence when it meets the condition of a property renting to five or more people, from two or more separate households, sharing basic amenities.
Previously HMO licencing was mandatory if it was three or more storeys. No more.
Failing to obtain a licence where one is required is a criminal offence, you can be prosecuted and fined up to £30,000.
A HMO property may also need a license from the local council under “Selective Licensing” – the minimum requirements for this vary council to council.
Do I have to pay commercial rates?
No – under some circumstances you can get a standard rate buy to let, in other circumstances you can get HMO Mortgages from Buy-to-Let Lenders and commercial mortgage rates typically that of last resort.
Commercial Valuation or Residential Valuation?
You can get a Commercial Valuation in which a property’s value is based on the Rental Income generated by the property – this typically needs to be evidenced by a existing HMO. You will require a Commercial Valuation and therefore Commercial Mortgage and rates.
You can proceed on a Residential Valuation – this means the property is valued on a brick and mortar basis. As if it was a standard residential home – not a HMO Business. With a Residential Valuation you can pay lower mortgage rates than a commercial valuation. The Rent to Interest affordability Calculation will be based on if it was a standard buy-to-let and not the HMO rent.
Which type of valuation is up to the lender, typically Buy to Let lenders will use a standard valuation and commercial lenders may in some circumstances use a commercial valuation. Typically if the property looks like or is a conversted residential property – it will be on a standard valuation. If it is an ex-carehome or other purpose built or substantially not residential – the lender can value it on commercial terms.
List of HMO Mortgage Lenders
Want to Compare HMO Mortgages?
Enquire Online its ONE form to compare FIFTEEN+ HMO Mortgage Lenders (and there many products). With Free No Obligation Initial Consultation.
- Aldermore Mortgages
- Axis Bank
- Barclays Bank
- Fleet Mortgages
- Kent Reliance
- Leeds BS
- Melton Mowbray BS
- Paragon Mortgages
- Post Office
- Precise Mortgages
- Shawbrook Bank
- Stafford Railway BS
- The Mortgage Works